Printing of textbooks like these for Ethiopian children are on hold because of a dispute by Alabama A&M University over the administration of the federal grant that is paying for the project. The dispute has led to an investigation by a federal agency. (The Huntsville Times file photo)

HUNTSVILLE, Alabama - A dispute over the administration of a multi-million dollar grant by Alabama A&M University is under investigation by a federal agency.

The dispute centers around $1.4 million that Alabama A&M said it is withholding because of questions regarding the grant, which is designed to provide textbooks to children in Ethiopia.

A spokesperson for the U.S. Agency for International Development, which issued the grant, said today the grant is "under investigation" and officials could not comment.

Amid the dispute, about a million textbooks have not been printed while awaiting the release of funds by Alabama A&M to pay for the books.

"It's really disappointing," said Mary Spor, the program director of the USAID Textbooks and Learning Materials Program/Ethiopia and the grant's principal investigator who retired from Alabama A&M on Aug. 31.

"We have no idea at this point when or if the children will ever get the books because A&M is withholding these payments from these vendors."

Alabama A&M has released about $12.8 million over the span of two USAID grants that were first awarded to the school in 2005 and 2009, according to Associate Provost Vann Newkirk.

He also said there are "numerous problems" to be solved before releasing the final $1.4 million. The school said it is not in possession of the money and that it remains at USAID.

Foremost among the issues, according to Newkirk, has been the creation of an escrow account by Spor to receive the funding. The escrow account was established without the knowledge or approval of Alabama A&M, the school said.

Mary Spor. (The Huntsville Times file photo)

Spor said the escrow account was created at the suggestion of USAID officials to receive funds after the Aug. 31 closeout date. An attempt to confirm that with USAID was not successful because of the ongoing investigation.

Alabama A&M also cited the fact that Spor retired from the school on Aug. 31, which coincided with the grant closeout date. Newkirk, in a prepared statement to The Times, said the requests for payment came after the closeout date and after Spor's retirement.

Newkirk said Alabama A&M was working with USAID to "seek guidance" regarding the closeout date and whether Spor remains the grant's principal investigator since she has retired from the school.

In another statement to The Times two days later, Alabama A&M said it had requested a new principal investigator from USAID.

Spor, however, produced an email dated July 25, 2012, from Curtis Martin, dean of the College of Education, Humanities and Behavioral Sciences at Alabama A&M acknowledging receipt of requests of the grant funding.

In the email, Martin referred to a June 27, 2012, email he sent to Spor's office manager advising that requests be sent to the office of vice president of Academic Affairs as part of the grant closeout.

The $1.4 million, however, is not part of the grant closeout but rather unpaid invoices for services rendered, Spor said, except for the textbook printer.

"Four other universities are involved in this textbook program," Spor said. "We're the only ones having these kinds of difficulties."

Spor said Alabama A&M has had a history throughout the grant of being slow to release money to vendors. She produced a 2009 letter Alabama A&M President Andrew Hugine sent to USAID just weeks after taking office expressing regret for slow payments.

In the letter, Hugine also pledged to make sure all future payments would be made in a timely manner.

Specifically, Spor said there are 12 "unpaid requisitions and encumbrances" that total about $1.4 million. The book printer cost is $1.298 million while the balance is made up in costs to consultants, travel expenses as well as two workshops held by the University of Alabama at Birmingham totaling $14,268.

UAB indicated it may take legal action to recover its expenses, according to an email sent to Spor and Alabama A&M officials.

"We've had difficulty the past three years trying to get payments to vendors in a timely manner," Spor said. "This is just an escalation of everything that has happened in the past."